What drives business cycles in Korea?

Yongseung Jung

Japan and the World Economy, 2019, vol. 52, issue C

Abstract: This paper sets up a two agent new Keynesian model to explore the driving forces in business cycles in Korea. It finds that the estimated share of constrained households increased after the Asian financial crisis. The estimated model via maximum likelihood shows that the technology shocks are important in the variations of output, while the monetary shocks have played a pivotal role in inflation variations. However, the contribution of the demand shock is negligible in explaining output and inflation variations in Korea.

Keywords: Maximum likelihood; Technology shock; TANK (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:52:y:2019:i:c:s092214251930043x

DOI: 10.1016/j.japwor.2019.100978

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